Savings: Your Key to Success

Mom, dad, and young son place coins into piggy bank.

You have wants, you have needs, and you may only have the following two ways to pay for them – pull out the credit card or use the money you have set aside. Which would you prefer?

It’s a safe bet that most people would choose to have a stash of cash from which they could pay for everything from impulse purchases to long-term financial goals. But how do you save when there are bills to pay and the paycheck only goes so far?

Do It Now

Even without a specific goal, saving immediately will make you feel good. Have debt? Put a little aside anyway. Acquiring a savings habit as soon as possible is critical. By setting a little aside each month while aggressively paying down your obligations, you will graduate into being debt free with a happy little nest egg in place. And in the event of an emergency, you’ll have options on how you want to pay for it and not feel trapped. 

Set a Goal

All achievable goals share the same five factors:

• Specific – describe your goal to the smallest details

• Measurable – how much do you need to save?

• Actionable – break it down into reasonable action steps

• Realistic – could you really achieve this goal in the given time?

• Time-bound – what is the timeframe for the goal?

Put it somewhere. How much you have, your timeframe and personal risk tolerance will determine the best home for your money.  A few accounts you may consider are:

Savings account –This is a  great starter account. Interest income and risks are traditionally low. You can open a regular Savings Account at Viriva and the minimum deposit of only $5.

Money market account – This savings account traditionally pays slightly better interest but may require a higher minimum balance with more restrictions. Learn More About Viriva’s Money Market Account here.

Certificates of deposit (CDs) – Generally, this type of savings account require a time commitment, making the funds inaccessible without paying a penalty fee. If your goal is to save for the long-term, you can benefit greatly, as CDs traditionally pays higher interest. Viriva offers very competitive CD rates to help its members reach their savings goals faster. Learn More

Saving money doesn't have to be difficult. With careful planning, its the key to successfully managing your money and getting everything you want. Contact our member service representatives today, to learn how you can start saving with Viriva.

This article was brought to you by Balance, our financial education partner.